The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1887-03-29
A FOOLISH PREDICTION.

The following appeared in an article in
the London "Times," on the payment of
the American national debt and its re-
sultant effect on Europe:
The great American State, discharged of
all these consequences, and with its re-
sources unencumbered, is slowly coming
into a position which, by its irresistible
competition, will one day bankrupt Europ-
can industry. When the Americans have
paid off their national debt the workmen
will be able to live more cheaply in the
United States than in any European coun-
try, and the economy of production in
America will be such that no European in
dustry will be able to compete with it in the
worlds markets. Reputation and general
bankruptcy of individuals as well as States
must follow. 1t is the memorable finale of
all the arming by land and sea, new guns
every year, and new loans to pay for them.
To hen of ordinary intelligence this
will appear as foolish prediction. 1t is
written in a tone of irrational despond-
ency bordering on despair, which one
would hardly expect to find III a news
paper that has been bounding on the
British Government to begin war of
determination in Ireland, and to fight
Russia on the Danube and in Central
Asia. If the mere fact of free and SOW
ereign people meeting their public obi
cations is to compel the Governments
and peoples of Europe to repudiate their
national and individual debts and 90
into general bankruptcy, as the ''Times'
predicts, what must be rottenness of
their political and social systems and
how very imperfect alss must be their
industrial methods? This absurd jere-
miad in the Times is unworthy the
standing and history OF that great organ
OF English public opinion. It is an evil
dence of loose thinking and ignorance on
the part of that journal which is not
consistent with its distinguished record.
There are thousand points to be taken
into consideration before anyone can pos
sibly form an approximate idea of
the result of the payment OF the
American public debt upon the indus
tries and finances of the world but as
this will be spread over a number of
years, and as every country has the
power within itself of shaping most of
those conditions to suit it's own re-
quirements, it follows that the task of
generalization is an exceedingly difficult
if not an impossible one. The process
of industrial and financial adjustment
will be silent and continuous. But the
Times does not hesitate a moment.
1t forsees the destruction of public and
private credit in Europe as the ''inex-
Orable finale" of America payingits debt
If anyone takes the trouble to think out
the subject for himself he will find many
points of hope and encouragement for
the industries of Europe, and of the gen
eral emancipation of the masses from
the class legislation of centuries, which
is the real drawback, as the result of the
payment of the United States debt
American competition would not be so
alarming to European producers were
social and economic conditions on that
continent more nearly alike those of
countries than they are.
But in any event the industries of
Europe will not be bankrupted, nor will
public and private credit be destroyed
because the United States is honestly
paying it's public creditors.